HomeMy WebLinkAboutORD 1991-134 1988-1992COUNTY OF HAWAII STATE OF HAWAII
BILL NO. 516
(DRAFT 2)
ORDINANCE NO. 91 13'_1
AN ORDINANCE AMENDING SECTION 25-96 (HAMAKUA DISTRICT ZONE
MAP), ARTICLE 3, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY
CODE, BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL
(A -40a) TO VILLAGE COMMERCIAL (CV -10); MULTIPLE FAMILY
RESIDENTIAL (RM -5) AND (RM -10) AND TO AGRICULTURAL (A -la) AT
KANAHONUA, WAIKOEKOE, KEAA, PUOPAHA, KALAKALAULA, HAMAKUA,
HAWAII, COVERED BY TAX MAP KEY 4-8-01:PORTION OF 4 AND
4-8-06:43, 44 AND PORTIONS OF 1 AND 11.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Section 25-96, Article 3, Chapter 25 (Zoning
Code) of the Hawaii County Code, is amended to change the
district classification of property described hereinafter as
follows:
The district classification of the following area
situated at Kalakalaula, Puopaha, Keaa, Waikoekoe and
Kanahonua, Hamakua, Hawaii, shall be Agricultural (A -la):
PARCEL A:
Beginning at the South corner of this parcel of land along
the Westerly side of Land Commission Award 7588-B Apana 2
to Kalaimamahu on the Northerly side of the Honokaa -
Waipio Road 240A-01-67 at the Easterly top of the stream.
The coordinates of said point of beginning referred to
Government Survey Triangulation Station "Puu Mauu North"
being 5,570.20 feet North and 5,645.76 feet East, thence
running by azimuths measured clockwise from True South;
1.
1140
42'
30"
2.
24"
42'
30"
3. 115' 15' 10"
96.87 feet along the Northerly
side or the Honokaa Waipio
Road 240-01-67;
14.53 feet along same;
92.64 feet along same to the
South corner of Lot 1 of
Camp 106 subdivision;
4.
204"
43'
10"
147.05
feet along Lot 1 to its
Easterly corner;
5.
114"
43'
10"
120.00
feet along the Northerly
side of Lots 1 and 2;
6.
24'
43'
10"
145.93
feet along Lot 2 to the
Westerly side of Highway:
7.
1150
15'
10"
40.00
feet along Highway to the
Southerly corner of Lot 3;
8.
204'
43'
10"
145.56
feet along Lot 3;
9.
114"
43'
10"
360.00
feet along the Northerly
side of Lots 3 through 8;
10.
24'
43'
10"
145.00
feet along Lot 8 to the
Northerly side of Highway;
11.
114"
43'
10"
40.00
feet along the Northerly
side of Highway to the
South corner of Lot 9;
12.
204'
43'
10"
145.00
feet long Lot 9;
13.
114'
43'
10"
901.00
feet along the Northerly
side of Lots 9 through 22;
14.
344'
22'
10"
111.99
feet along Lot 22;
15.
338"
08'
10"
53.00
feet along Lot 22;
16.
3280
16'
40"
42.00
feet along Lot 22 to the
Northerly side of Highway;
17.
114"
43'
10"
652.37
feet along Northerly side
of Highway to the Easterly
side of Land Commission
Award 8559-B apana 2;
18.
1130
57'
43"
366.78
feet along the Northerly
side of the old Government
Road to Waipio;
- 2 -
19.
113'
23'
00"
418.74
feet along the same;
20.
116'
16'
00"
471.74
feet along the same;
21.
113°
45'
00"
74.49
feet along same to the
South corner of TMK
4-8-06:15;
22.
203'
45'
00"
315.23
feet along the remainder
of L.C. Aw. 8559-B apana 2;
23.
89"
43'
00"
452.02
feet along the remainder
of L.C. Aw. 8559-B apana 2;
24.
179°
43'
00"
165.00
feet along the remainder
of L.C. Aw. 8559-B apana 2
to the Southerly side of
L.C. Aw. 1294 Ap. 1;
25.
89°
43'
00"
102.00
feet along L.C. Aw. 1294
Ap. 1 to its Westerly
corner;
26.
200°
43'
00"
161.91
feet along L.C. Aw. 1294
Ap. 1;
27.
890
43'
00"
473.12
feet along the remainder
of L.C. Aw. 8559-B apana 2;
28.
180'
30'
00"
410.63
feet along the same;
29.
66"
15'
00"
219.35
feet along the same to the
Easterly side of L.C. Aw.
11216 Ap. 50;
30.
85'
00'
00"
190.50
feet along the Northerly
side of the cemetery lot:
31.
40
00'
00"
266.84
feet along the Westerly
side of the cemetery lot;
32.
900
41'
00"
877.93
feet along the remainder
of L.C. Aw. 11216 Ap. 50;
33.
6"
59'
00"
164.15
feet along same to the
Easterly corner of school
Grant 14 Apana 5;
- 3 -
34.
95'
35'
00"
35.
76°
19'
30"
36.
352"
02'
00"
37. 78" 51' 30"
38. 1910 55' 00"
39.
180°
57'
30"
40.
101'
32'
30"
41.
1750
05'
00"
42.
1930
00'
00"
43.
260'
41'
00"
44.
2100
55'
00"
45.
234'
31'
00"
46.
2490
56'
00"
47.
256°
04'
00"
48.
354"
30'
28"
49.
278'
10'
28"
222.00 feet along school Grant;
388.97 feet along Parcel "C";
174.15 feet along Parcel "C" to
the Northerly side of the
old Government Road to
Waipio;
217.70 feet along the Northerly
side of the Old Government
Road to Waipio;
168.22 feet along the Westerly
side of the 30.00 foot
wide pipeline and access
road easement;
103.45 feet along the same;
112.40 feet along the same;
364.30 feet along the same;
275.47 feet along the same to the
top of the cliff;
68.03 feet along the same;
125.52 feet along the same;
107.04 feet along the same;
75.97 feet along the same;
162.26 feet along the same to the
Westerly side of L.C. Aw.
7131 to Kaai;
517.30 feet along the Westerly
side of L.C. Aw. 7331;
434.24 feet along the Southerly
side of L.C. Aw. 7331;
- 4 -
50.
187'
25'
28"
823.47
feet along the Easterly
side of L.C. Aw. 7331 to
the Southerly side of L.C.
Aw. 7874 to Wailuahi;
51.
2840
25'
28"
188.76
feet along the Southerly
side of L.C. Aw. 7874;
52.
1930
25'
28"
251.83
feet along the Easterly
side of L.C. Aw. 7874;
53.
184'
25'
28"
290.06
feet along the same to the
top of Cliff;
54.
251'
31'
00"
88.34
feet along the top of
Cliff;
55.
229'
32'
00"
73.87
feet;
56.
216"
08'
00"
224.37
feet;
57.
236'
40'
00"
152.99
feet;
58.
2360
22'
00"
127.23
feet;
59.
2430
58'
00"
165.71
feet;
60.
2560
36'
07"
380.05
feet;
61.
2590
46'
33"
80.83
feet;
62.
2350
48'
06"
329.81
feet;
63.
241"
10'
30"
250.48
feet;
64.
264'
13'
21"
373.04
feet;
65.
271"
57'
15"
270.47
feet;
66.
251"
59'
20"
259.64
feet;
67.
219'
51'
50"
214.62
feet;
68.
287'
39'
55"
360.14
feet;
69.
247'
31'
16"
1,028.50
feet;
�1=
70.
269'
36'
00"
2,648.95
feet to the
Westerly side
of L.C. Aw.
7588-B Ap. 2;
71.
9°
39'
11"
829.09
feet along
the Westerly
side of L.C. Aw.
7588-B A. 2;
72.
280
09'
11"
382.00
feet along
the same;
73.
310
09'
11"
540.00
feet along
the same;
74.
80
39'
11"
695.00
feet along
the same;
75.
6'
39'
11"
220.00
feet along
the same;
76.
3580
07'
ill.
118.80
feet along
the same;
77.
7°
07'
11"
244.20
feet along
the same;
78.
310
37'
11"
153.12
feet along
the same;
79.
29'
07'
11"
165.00
feet along
the same;
80.
27"
37'
11"
87.12
feet along
the same;
81.
220
52'
11"
171.60
feet along
the same;
82.
20'
37'
11"
133.32
feet along
the same;
83.
316"
07'
11"
79.20
feet along
the same;
84.
310
07'
11"
118.80
feet along
the same;
85.
750
07'
11"
48.01
feet along
the same to the
Easterly top of the stream;
86.
180
39'
11"
906.04
feet along
the Easterly
top of stream;
87.
320
34'
00"
550.36
feet along
the Easterly
top of the
stream to the
point of beginning and
containing
a gross area of
497.208 acres and a net
- 6 -
area of 439.808 acres
after excluding parcels
"C", "D", "E" and "F".
(Refer to Parcel "A" as
shown on Exhibit "A".)
Excluding also a 0.40 acre
parcel owned by the United
States of America for a
lighthouse and more
particularly described as
follows:
LIGHTHOUSE PARCEL:
Beginning at the Westerly corner of this parcel of land,
the coordinates of said point of beginning referred to
Government Survey Triangulation Station "Kukui" being
48.41 feet North and 466.49 feet East, thence running by
azimuths measured clockwise from True South;
1. 228' 25' 40" 105.85 feet along the remainder
of Grant 1772;
2.
2740
22'
00"
72.10
feet
along
the
same;
3.
3410
12'
40"
79.40
feet
along
the
same;
4.
56'
40'
00"
153.80
feet
along
the
same;
5. 150° 57' 00" 105.70 feet along the same to the
point of beginning and
containing an area of 0.40
acre.
The district classification of the following area
situated at Kanahonua and Waikoekoe, Hamakua, Hawaii,
shall be Agricultural (A -la):
PARCEL "B":
- 7 -
Beginning
at the Northwest corner of this parcel of land
along
the
Southerly
side of the
Old Government Main Road
to Waipio
and
the Easterly
side
of Mud Lane. The
coordinate
of
said
point of beginning referred to
Government
Survey
Triangulation
Station "Puu Mauu North"
being
7,181.45
feet
North and 440.69 feet West, thence
running
by
azimuths
measured clockwise from True South;
1.
2580
51'
30"
537.09
feet along the Southerly
side of the Old Government
Main Road to Waipio to the
Northerly corner of the
West Hamakua Church lot;
2.
3'
30'
00"
142.28
feet along the Westerly
side of the West Hamakua
Church lot:
3.
273"
30'
00"
210.73
feet along the remainder
of L.C. Aw. 11216:50;
4.
279'
40'
00"
220.06
feet along the same;
5.
11'
23'
00"
503.63
feet along the remainder
of L.C. Aw. 11216:50;
6.
274'
34'
30"
875.84
feet along the same to the
Westerly side of L.C. Aw.
8559-B:2;
7.
1970
30'
00"
101.28
feet along the Westerly
side of L.C. Aw. 8559-B:2;
8.
193'
00'
00"
530.00
feet along the same;
9.
1800
30'
00"
131.70
feet along the same to the
Southerly side of the Old
Government Main Road to
Waipio;
10.
264'
40'
00"
121.65
feet along the Southerly
side of the Old Government
Main Road to Waipio:
11.
278'
03'
00"
248.01
feet along the same;
12.
292°
48'
00"
66.29
feet along the same to the
Westerly side of L.C. Aw.
7877:2;
13.
50
00'
00"
732.97
feet along the Westerly
side of L.C. Aw. 7877:2;
14.
2750
30'
00"
526.03
feet along the Southerly
side of L.C. Aw. 7877:2;
15.
1800
30'
00"
585.22
feet along the Easterly
side of L.C. Aw. 7877:2 to
the Southerly side of the
Old Government Main Road
to Waipio;
16.
2920
48'
00"
41.44
feet along the Southerly
side of the Old Government
Main Road to Waipio;
17.
2930
45'
00"
67.33
feet along the same;
18.
23'
23'
00"
125.20
feet along the remainder
of L.C. Aw. 8559:B:2;
19.
2930
45'
00"
65.00
feet along the same;
20.
296'
16'
00"
513.00
feet along the same;
21.
2930
23'
00"
420.00
feet along the same:
22.
230
23'
00"
14.52
feet along the same to the
Northerly side of the
Honokaa-Waipio Road
24A-01-71;
23.
Along
a curve to
the left
with a radius of 2638.77
feet the chord azimuth and
distance being:
900 49' 50" 207.70 feet;
24.
88'
34'
30"
337.32
feet along the Northerly
side of the Honokaa-Waipio
Road 240A-01-71;
25.
1780
34'
30"
10.00
feet along the same;
26.
88'
34'
30"
330.00
feet
along
the
same;
27.
178'
34'
30"
10.00
feet
along
the
same:
28.
880
34'
30"
300.00
feet
along
the
same;
29.
178"
34'
30"
20.00
feet
along
the
same;
30.
880
34'
30"
330.00
feet
along
the
same:
31.
3580
34'
30"
40.00
feet
along
the
same;
32.
880
34'
30"
70.00
feet
along
the
same;
33.
178'
34'
30"
30.00
feet
along
the
same:
34.
880
34'
30"
100.00
feet
along
the
same;
35.
3580
34'
30"
20.00
feet
along
the
same;
36.
880
34'
30"
357.11
feet
along
the
same:
37.
880
34'
30"
142.88
feet
along
the
same:
38.
178'
34'
30"
10.00
feet
along
the
same;
39.
88"
34'
30"
450.00
feet
along
the
same;
40.
3580
34'
30"
10.00
feet
along
the
same:
41.
880
34'
30"
250.00
feet
along
the
same;
42.
178"
34'
30"
10.00
feet
along
the
same;
43.
88"
34'
30"
200.00
feet
along
the
same:
44.
3580
34'
30"
10.00
feet
along
the
same;
45.
88"
34'
30"
738.20
feet
along
the
same;
46.
1820
30'
00"
160.00
feet
along
the
same:
47.
92'
30'
00"
15.00
feet
along
the
same;
48.
182'
30'
00"
3.71
feet
along
the
Easterly
side
of Mud Land:
- 10 -
49. 2770 05' 00" 268.06 feet along the Southerly
side of Exec. Ord. 676;
50. 1870 05' 00" 325.00 feet along the Easterly
side of Exec. Ord. 676;
51. 97° 05' 00" 261.75 feet along the Northerly
side of Exec. Ord. 676;
52. 1900 27' 19" 341.41 feet along the Easterly
side of Mud Lane to the
point of beginning and
containing an area of
33.692 acres. (Refer to
Parcel "B" as shown on
Exhibit "A".)
The district classification of the following area
situated at Waikoekoe and Keaa, Hamakua, Hawaii, shall be
Multiple Family Residential (RM -5):
PARCEL "C":
Beginning at the South corner of this parcel of land. The
coordinates of said point of beginning referred to
Government Survey Triangulation Station "Puu Mauu North"
being 7,190.88 feet North and 3,478.26 feet East, thence
running by azimuths measured clockwise from True South;
1. 127' 49' 00" 182.32 feet along the remainder
of Land Commission Award
8559-B Apana 2;
2. Along a curve to the right along the remainder of
L.C. Aw. 8559-B Ap. 2 with
a radius of 420.00 feet,
the chord azimuth and
distance being:
172' 36' 00" 591.72 feet;
3. 2170 23' 00" 54.70 feet along the remainder
of L.C. Aw. 8559-B Ap. 2;
4. Along a curve to the right with a radius of 630.00
feet the chord azimuth and
distance being:
2499 51' 30" 676.53 feet;
5. 2820 20' 00" 553.96 feet along the remainder
of Grant 1772 and L.C. Aw.
8559-B Ap. 2;
6. 352° 00' 00" 95.00 feet along the remainder
of Grant 1772;
7. 12" 00' 00" 195.00 feet along the remainder
of Grant 1772 and L.C. Aw.
8559-B Ap. 2;
B. 86" 10' 00" 695.07 feet along the remainder
Of L.C. Aw. 8559-B Ap. 2;
9. 270 04' 00" 590.01 feet along the remainder
of L.C. Aw. 8559-B Ap. 2
to the point of beginning
and containing an area of
15.000 acres. (Refer to
Parcel "C" as shown on
Exhibit "A".)
The district classification of the following area
situated at Waikoekoe and Keaa, Hamakua, Hawaii, shall be
Village Commercial (CV -10):
PARCEL "D":
Beginning at the South corner of this parcel of land. The
coordinates of said point of beginning referred to
Government Survey Triangulation Station "Puu Mauu North"
being 8,055.03 feet North and 3,200.82 feet East, thence
running by azimuths measured clockwise from True South;
1. 101° 37' 00" 123.00 feet along the remainder
of Land Commission Award
8559-B Apana 2;
- 12 -
2. 179° 45' 00" 269.00 feet along the same:
3. 1930 52' 00" 414.76 feet along the same:
4. 2800 45' 00" 1,077.43 feet along the remainder
of L.C. Aw. 8559-B Ap. 2;
5. 319° 40' 00" 309.3.9 feet along the remainder
of Grant 1772;
6. 12' 20' 00" 144.51 feet along the remainder
of Grant 1772;
7. 1020 20' 00" 570.77 feet along the remainder
of Grant 1772 and L.C. Aw.
8559-B Ap. 2;
8. Along a curve to the left with a radius of 640.00
feet the chord azimuth and
distance being:
690 39' 00" 691.19 feet
to the point of beginning
and containing an area of
12.000 acres. (Refer to
Parcel "D" as shown on
Exhibit "A".)
The district classification of the following area
situated at Waikoekoe and Keaa, Hamakua, Hawaii, shall be
Multiple Family Residential (RM -10):
PARCEL "E":
Beginning at the Northeast corner of this parcel of land
along the top of the cliff. The coordinates of said point
of beginning referred to Government Survey Triangulation
Station "Puu Mauu North" being 10,562.68 feet North and
4,705.44 feet East, thence running by azimuths measured
clockwise from True South;
1. 3120 09' 00" 107.14 feet along the remainder
of Grant 1772;
- 13 -
2. 346' 53' 00" 174.00 feet along the remainder
of Grant 1772;
3. 25° 46' 00" 340.00 feet along the remainder
of Grant 1772;
4. 3' 10' 00" 395.19 feet along the remainder
of Grant 1772;
5. Along a curve to the right with a radius of 225.00
feet, the direct chord
azimuth and distance being:
830 51' 30" 444.07 feet;
6. 164° 33' 00" 218.69 feet along the remainder
of Grant 1772;
7. Along a curve to the left with a radius of 200.00
feet, the direct chord
azimuth and distance being:
1240 58' 00" 254.88 feet;
8. 85° 23' 00" 116.22 feet along the remainder
of L.C. Aw. 8559-B Ap. 2;
9. 1630 12' 00" 260.00 feet along the same to the
top of the cliff;
10. Along the top of the cliff in all its winding to the
point of beginning, the
direct azimuth and
distance being:
247' 31' 16" 1,028.50 feet;
and containing an area of
15.000 acres. (Refer to
Parcel "E" as shown on
Exhibit "A".)
The district classification of the following area
situated at Waikoekoe, Hamakua, Hawaii, shall be Village
Commercial (CV -10):
PARCEL "F":
- 14 -
Beginning
at the Northeast corner of this parcel of land
along
the
top
of the
cliff, the
coordinates
of
said point
of beginning
referred
to Government Survey
Triangulation
Station
"Puu
Mauu
North"
being
10,113.99 feet
North and
3,274.37
feet
East,
thence running
by azimuths
measured
clockwise
from
True
South;
1.
3530
00'
00"
272.23
feet along
the
remainder
of L.C. Aw.
8559-B Ap. 2;
2.
170
00'
00"
549.38
feet along
the
same:
3.
1020
00'
00"
630.44
feet along
the
same;
4.
1640
00'
00"
284.49
feet along
the
same;
5.
840
00'
00"
100.03
feet along
the
same:
6.
46'
42'
00"
190.16
feet along
the
same;
7.
92'
37'
00"
270.46
feet along
the
same;
8.
154'
29'
00"
116.13
feet along
the
same to the
top of the
cliff;
9.
2350
48'
06"
329.81
feet along
the
same;
10.
2410
10'
30"
250.48
feet along
the
same:
11.
2640
13'
21"
373.04
feet along
the
same;
12.
2710
57'
15"
270.47
feet along
the
same;
13.
2510
59'
20"
259.64
feet along
the
same to the
point of beginning
and
containing
an
area of
15.000 acres.
(Refer to
Parcel "F"
as
shown on
Exhibit "A".)
- 15 -
All as shown on the map attached hereto, marked
Exhibit "A" and by reference made a part hereof.
SECTION 2. These change in district classification are
conditioned upon the following: (A) the applicant, successors
or assigns shall be responsible for complying with all of the
stated conditions of approval and other agreements as contained
in Exhibit B; (B) the effective date of the rezoning shall be
(1) when the applicant provides assurance satisfactory to the
Departments of Water Supply and Planning, upon consultation
with the State Department of Health and the Department of Land
and Natural Resources that a water source(s) of sufficient
quality and quantity has (have) been established within two
years from the date of mayoral signature; provided that a
maximum one-year extension may be granted by the Planning
Director with reasonable and sufficient justification; and
(2) an agreement, together with the appropriate bond, surety or
other security deemed acceptable by the Planning Director, is
executed between the applicant and the County through its
Departments of Water Supply and Planning for the actual
development of a proven source and its water transmission and
distribution system within one year from the official date of
compliance with Condition B(1); provided that a one-year
- 16 -
extension may be granted by the Planning Director with
reasonable and sufficient justification; (C) plans for
agricultural subdivision, plan approval review of the
condominiums and hotel and golf course development, shall be
submitted to the Planning Department within eighteen months
from the effective date of the change of zone ordinance.
Tentative or preliminary approvals shall be secured within one
year thereafter. Final subdivision approval or plan approval
of the various project components shall be secured within one
year thereafter; (D) the connecting road ("Mud Lane Road"
extension) from Highway 240 to the Hawaii Belt Road shall be
constructed meeting with the approval of the Department of
Public Works. The "Mud Lane Road" extension shall be
constructed in its entirety prior to issuance of a certificate
of occupancy for any portion of the development, opening of any
golf course or in conjunction with final subdivision approval
of any portion of the development, whichever comes first;
(E) intersection improvements, which may include traffic
signals and channelization, shall be provided at the new Mud
Lane Road -Hawaii Belt Road intersection and the new Mud Lane
Road -Highway 240 intersection as required by the Department of
Transportation and the Department of Public Works; (F) A new
primary access shall be constructed to the Hamakua Makai area
M&M
between Kona Camp and the existing access to Kukuihaele in
conjunction with any development occurring on the Hamakua Makai
area. Additionally, a new by-pass intersection to the west
(Waipio side) of Tiger Camp and a new access road (cul-de-sac)
to the end of Tiger Camp shall be constructed in conjunction
with any development occuring on the Hamakua [Mauka or] Makai
areas. The new primary access, the new Kukuihaele by-pass
intersection. and improvements to the existing Kukuihaele Road
(i.e. pavement widening and bike oath/pedestrian walkway)
through the Village shall be reviewed and approved by the
Department of Public Works in consultation with the Plannino
Department. and completed prior to issuance of any certificate
of occupancy, final subdivision approval or opening of the golf
course, whichever occurs first; (G) an internal traffic
circulation plan of the project area (Hamakua Makai) shall be
submitted for review and approval by the Department of Public
Works prior to submitting plans for plan approval, subdivision
or grading. The internal traffic circulation plan, shall
indicate the conceptual roadway network to and through the
various development areas. To minimize potential traffic
impacts to the existing Kukuihaele Road, all interior roadways
shall access from the primary access road; (H) an historic
preservation mitigation plan of each development area shall be
- 18 -
prepared and submitted for approval by the Planning Department,
in consultation with the Department of Land and Natural
Resources, prior to submitting plans for preliminary
subdivision, plan approval review, or grading, whichever comes
first. The plan shall consist of an archaeological data
recovery plan and a preservation plan. Approved mitigation
measures shall be implemented prior to or in conjunction with
any land alterations in the respective development areas;
(I) should any unidentified sites or remains such as artifacts,
shell, bone, or charcoal deposits, human burials, rock or coral
alignments, pavings or walks be encountered, work in the
immediate area shall cease and the Planning Department shall be
immediately notified. Subsequent work shall proceed upon an
archaeological clearance from the Planning Department when it
finds that sufficient mitigative measures have been taken;
(J) to ensure that the Goals and Policies of the Housing
Element of the General Plan are implemented, the applicant
shall work with the Office of Housing and Community Development
and the Planning Department to formulate a housing plan for the
development, which shall be consistent with the interim
affordable housing policy of the County as contained in the
Hawaii County Housing Agency Resolution No. 65. This housing
plan which shall include escrow instructions for employee
- 19 -
housina, shall be approved by the County Housing Agency prior
to final subdivision or plan approval of any portion of the
village commercial or multiple -family residential zoned area;
provided that the applicant shall notify the County Housing
Agency of any intent to sell, lease, assign, place in trust, or
otherwise voluntarily alter the ownership interest in the
property prior to visible commencement of construction on the
property; provided further that the applicant may transfer
ownership in the property to an affiliate or in a manner
consistent with prior representations to the County Housing
Agency; (K) as agreed to by the applicant, restrictive
covenants in the deeds of all agricultural zoned lots shall
prohibit the construction of ohana dwelling units. A copy of
the proposed covenant(s) shall be submitted to the Planning
Department for review and approval prior to final subdivision
approval of each agricultural subdivision. Written assurance
for implementation of this condition, which has met with the
approval of the Planning Department, shall be submitted to the
Planning Department prior to final subdivision approval of each
agricultural subdivision. A copy of a typically recorded
covenant shall be filed with the Planning Department within one
year from the date of final subdivision approval of each
agricultural subdivision; (L) it shall be demonstrated to the
- 20 -
satisfaction of the Planning Department that agricultural
activity is being conducted on the subdivided
agricultural -zoned zoned lots within three years from the date
of final subdivision approval. For the purpose of this
condition, "agriculture" shall be defined as the cultivation of
crops, including but not limited to flowers, vegetables,
foliage, fruits, forage and timber; game propagation; raising
of livestock, including but not limited to poultry, bees, fish
or other animal or aquatic life that are propagated for
economic or personal use. This condition shall be incorporated
in each of the deeds for the proposed agricultural -zoned lots
and duly recorded with the State Bureau of Conveyances. A copy
of the recorded deeds shall be filed with the Planning
Department within one year from the date of final subdivision
approval of the agricultural -zoned lots; (M) the applicant
shall work with the State Department of Education and the
Planning Department to provide its pro rata share for school
facilities. The pro rata share determination and its
implementation (i.e. dedication of land, construction of
classrooms or funding) shall be approved by the Planning
Department, in consultation with the Department of Education,
prior to final subdivision approval of any portion of the
multiple -family residential or agricultural development;
- 21 -
provided that compliance with this condition may be satisfied
through compliance with the same condition in the Hamakua Mauka
change of zone ordinance; (N) prior to development or land
alterations of any portion of the [Hamakua Mauka or] Hamakua
Makai areas, a comprehensive drainage study shall be conducted
to determine the type of drainage improvements that would be
required given the topography of the area; the stream and
gulches which cross -cut the property; the geological
composition of the area; and the amount of water to be
generated by the proposed development. The study shall be
reviewed and approved by the Department of Public works and
approved recommendations implemented as the development
proceeds. Accordingly, a drainage system shall be installed
meeting with the requirements of the Department of Public
Works; (0) the applicant shall [set aside] provide a maximum of
6 acres of land for fire/police station expansion, or as
otherwise agreed upon by the Fire and Police Chiefs and the
Planning Director. The land area, its location and timing of
dedication, shall be approved prior to submitting plans for
subdivision or plan approval review of any portion of the
development; provided that compliance with this condition may
be satisfied through compliance with the same condition in the
Hamakua Mauka change of zone ordinance; (P) the applicant shall
- 22 -
provide an additional transfer station and necessary
improvements meeting with the approval of the Department of
Public Works. The transfer station and required improvements
shall be provided prior to issuance of a certificate of
occupancy, establishment of the golf course or final
subdivision approval for any portion of the development;
provided that compliance with this condition may be satisfied
through compliance with the same condition in the Hamakua Mauka
change of zone ordinance; (Q) the applicant shall [identify]
provide a minimum of 6.1 -acres of land for park and
recreational use to be incorporated with the existing county
park site; provided that compliance with this condition may be
satisfied through compliance with the same condition in the
Hamakua Mauka change of zone ordinance. The land area,
configuration, and type of improvements shall meet with the
approval of the Departments of Parks and Recreation and
Planning prior to submitting plans for subdivision or plan
approval review. The park site development shall be completed
prior to occupancy of any units of the development. The
construction of a community center shall be included in the
improvements to be provided on the park site. The phasing of
park site development shall also meet with the approval of the
Departments of Parks and Recreation and Planning
- 23 -
Until such
time that the park is dedicated to and accepted by the County,
there shall be adequate assurance, as determined by the
Corporation Counsel, for the maintenance of the private park by
recorded covenant running with the land which shall include the
following: (1) obligate the subdividers to maintain the
private park in perpetuity; and (2) empower the County, through
the Department of Parks and Recreation, to enforce the
covenants to maintain the private park, authorizing the
performance of maintenance work by the County in the event of
failure by the subdividers, purchasers, occupants, or
association in the subdivision to perform such work and permit
the subjecting of the land and properties in the subdivision to
a lien until the cost of the work performed by the County has
been reimbursed; (R) a minimum 300-foot wide buffer consisting
of a minimum of 350 acres shall be set aside on the Waipio
Valley rim to serve as a preservation buffer for Waipio
Valley. The buffer shall be described as a perpetual easement
for the purpose of protecting the land in its natural, scenic,
and open-space condition and shall be maintained in perpetuity
by the applicant, successors or assigns. The terms and
conditions of the easement shall include Provisions for the
applicant's Participation in a reforestation Program
wilderness trail system, and related improvements which shall
�Z.M
be reviewed and approved by the Planning Department, in
consultation with the Department of Land and Natural Resources,
prior to any final subdivision approval or final plan approval
or land alterations of the Hamakua Mauka and Makai areas; (S) a
new lookout, parking and related improvements shall be
[provided in conjunction with any development occurring on the
Hamakua Mauka or Makai areas] completed prior to occupancy of
any units of the development. These improvements, its location
and design, shall be approved by the Planning Department prior
to submitting plans for subdivision, plan approval or grading
of the project areas; (T) an interpretive cultural center shall
be provided within the [Kukuihaele Special Treatment]
development area and shall be completed prior to occupancy of
any units of the development. The interpretive cultural
center, its location, improvements (with possible phasing
thereof) and management shall be approved by the Planning
Department prior to submitting plans for subdivision, plan
approval or grading of the project areas: provided that
compliance with this condition may be satisfied through
compliance with the same condition in the Hamakua Mauka change
of zone ordinance; (U) a job training program for the operating
phase of the hotel shall be developed and submitted to the
Planning Department for review and approval prior to receipt of
- 25 -
Final Plan Approval for the hotel development. The on-going
training program shall continue and will provide for an
upgrading of skills and opportunities; (V) [a regional
infrastructural improvement program (RIIP) shall be formulated
by the applicant and submitted for review and approval by the
Planning Department, in consultation with appropriate affected
agencies, prior to submittal of plans for any subdivision or
plan approval review of any area of development. The RIIP
shall include (1) the identification of existing regional
off-site infrastructure, including but not limited to fire,
police, emergency medical, health, education, wastewater, solid
waste, and park facilities/services, and roads and highways;
(2) identification of projected regional infrastructural
improvements based upon current available information, plans
and respective agency data; (3) estimated impact of project on
regional infrastructure utilizing methodology and figures
acceptable to the Planning Department; and (4) implementation
program for alleviating regional public facility and public
service impacts. Conditions within this ordinance which
require infrastructural improvements may fully or partially
satisfy the regional infrastructural improvement program, if
determined by the Planning Department, in consultation with the
affected agency(ies), to meet projected regional demands;
- 26 -
(W) ]comply with all other applicable laws, rules, regulations
and requirements; ([X]Pkl) should the council adopt a Unified
Impact Fees ordinance setting forth criteria for the imposition
of exactions or the assessment of impact fees, conditions
included herein may, at the developer's election, be satisfied
by performance in accordance with the requirements of the
Unified Impact Fees ordinance; ([Y]X) an annual progress report
shall be submitted to the Planning Department prior to the
anniversary date of the approval of this change of zone. The
report shall address in detail the status of the development of
each area (including number of lots created, number of units
constructed) and the compliance with the conditions of
approval. This condition shall remain in effect until all of
the conditions of approval have been complied with and the
Planning Department acknowledges that further reports are not
required; and, ([Z]Y) an extension of time for the performance
of conditions set forth in this ordinance may be granted by the
Planning Director upon the following circumstances: 1) the
non-performance is the result of conditions that could not have
been foreseen or are beyond the control of the applicant,
successors or assigns, and that are not the result of their
fault or negligence; 2) granting of the time extension would
not be contrary to the general plan or zoning code; 3) granting
- 27 -
of the time extension would not be contrary to the original
reasons for the granting of the change of zone; 4) the time
extension granted shall be for a period not to exceed the
period originally granted for performance (i.e., a condition to
be performed within one year may be extended for up to one
additional year); and 5) if the applicant should require an
additional extension of time, the Planning Director shall
submit the applicant's request to the County Council for
appropriate action. Further, should any of the conditions of
the respective development areas not be met or substantially
complied with in a timely fashion, the Director shall initiate
rezoning of the applicable area to its original or more
appropriate designation.
SECTION 3. In the event that any portion of the ordinance
is declared invalid, such invalidity shall not affect the other
parts of this ordinance.
SECTION 4. This ordinance shall take effect upon its
approval.
INTRODUCED BY:
COU! IL MEPBE COUN OF HAWAII
Hilo, Hawaii
Date of Introduction:
November
20,
1991
Date of lst Reading:
November
20,
1991
Date of 2nd Reading:
December
10,
1991
Effective Date:
December
26,
1991
- 28 -
RUSSELL S. KOKUBUN
Cha=an k Presiding Officer
MERLE K. LAI
Vice -Chas woman
OK"o r`
COUNTY COUNCIL
County of Hawaii
Hawaii County Building
25Aupuni Shut
Hilo, Hawaii 96720
)AMPS Y. ARAKAKI
BRIAN I. DE LIMA
TAKASHI DOMINGO
HELENE H. HALE
ROBERT H. MAKUAKANE
HARRY S. RUDDLE
SPENCER K. SCHL=
On Bill No. 516, Draft 2 , Ordinance No. 91-134 ,
reference is made to a map attached hereto, marked Exhibit " A"
Said Exhibit is not part of the duplicate copies of this
ordinance, due to its size, but is available for viewing in the
Office of the County Clerk.
If further information is needed, call 961-8255.
l/1 • V
jrJeohn
A. WagnerrCOUNTY CLERK
EXHIBIT "B"
AGREEMENT
AGREEMENT, made this day of 1991, by and
among HAMAKUA SUGAR COMPANY, INC. ("Hamakua") and WESTERN FARM
CREDIT BANK ("WFCB").
W I T N E S S E T H:
WHEREAS, Hamakua is facing impending foreclosure by the
Western Farm Credit Bank (WFCB); and
WHEREAS, if Hamakua is unable to most its obligations, it
faces inevitable foreclosure and cessation of sugar growing
operations; and
WHEREAS, the closure of Hamakua would result in the loss of
approximately 750 plantation jobs and 450 plantation supported
housing units; and
WHEREAS, the County of Hawaii recognizes that the loss of
Hamakua would significantly impact the County's economy, especially
in the Hamakua area; and
WHEREAS, Hamakua wishes to rezone approximately 3,827 acres
of plantation land in the vicinity of Kukuihaele to develop a
resort complex and residential community; and
WHEREAS, if Hamakua's land sales recovery program is
successful in retiring the present debt that the company will be
a financially viable enterprise for the foreseeable future; and
WHEREAS, the County would like to assist Hamakua with its
plans for development, but has concerns about the future impacts
upon the Kukuihaele community and its residents; and
WHEREAS, the County has similar concerns about the uncertain
housing future for Hamakua's employees; and
WHEREAS, Hamakua on behalf of its successors and/or assigns
is willing to provide certain community benefits to lessen the
impacts that development may have upon the Kukuihaele area; and
WHEREAS, Hamakua has agreed to certain employee housing
programs to ensure that employee housing is perpetuated in the
unlikely event that Hamakua closes its operations, goes into
bankruptcy, or is foreclosed upon;
NOW, THEREFORE, upon receipt of rezoning for the Kukuihaele
land use plan, Hamakua and WFCB hereby agree to perform and commit
to the following:
1. Hamakua, either solely or in conjunction with its
designated successors or assigns, agrees to implement
the list of regional and community benefits contained in
the "Kukuihaele Land Use Public Benefits Proposal"
(October, 1991) and appended hereto as Appendix 1.
2. Hamakua, either solely or in conjunction with its
designated successors or assigns, agrees to facilitate
an ongoing working relationship with the Kukuihaele
community in the implementation of community wide
benefits (i.e. park site, interpretive cultural center,
community center) for Kukuihaele through the Hamakua
District Development Council (HDOC).
3. Hamakua, either solely or in conjunction with its
designated successors or assigns, agrees to establish a
Real Property Tax Trust Fund for the residents of
Kukuihaele to provide additional tax relief beyond what
is available in the existing real property tax system.
A draft of the proposed fund is appended hereto as
Appendix 2.
4. Hamakua agrees to those employee housing provisions
appended hereto as Appendix 3.
In the event that any provision of this agreement is declared
unconstitutional, or the applicability thereof to any person or
circumstance is held invalid, the constitutionality or the validity
of the remainder of this agreement shall not be affected.
IN WITNESS WHEREOF, the parties hereto have executed this agreement
as of the day and year first above written.
HAMAKUA SUGAR COMPANY, INC.
By Yo
Its President 6 C.E.O.
WESTERN FARM CREDIT BANK
By
Its
NOW, THEREFORE, upon receipt of rezoning for the Kukuihaele
land wee plant Hamakua and WKS hereby agroe to perform and commit
to the following:
1. Hamakua, either solely or in oon,)unction with its
designated successors or assign&, agrees to implement
the list of regional and community benefits contained in
the "Kukuihaele Land Use Public Benefits Proposal"
(October, 1901) and appended hereto as Appendix 1.
to Hamakua, either solely or in conjunction with its
designated successors or assigns, agrees to facilitate
an ongoing working relationship with the Kukuihaele
community in the implementation of community wide
benefits (i.e. park site, interpretive cultural center,
community center) for Kukufhaele through the Hamakua
District Development Council (NDDC).
9. Hamakua, either solely or in conjunction with its
designated successors or assigns, agrees to establish a
Real Property Tax Trust Fund for the residents of
Kukuihaele to provide additional tax relief beyond what
is available in the existing real property tax system.
A draft of the proposed fund is appended hereto as
Appsndix t.
4. Hamakua agrees to those employee housing provisions
appended hereto as Appendix i.
In the event that any provision of this agreement is declared
unconstitutional, or the applicability thereof to any person or
circumstance Is held invalid, the constitutionality or the validity f
of the remainder of this agreement *hall not be affected.
IN WITNESS WHEREOF, the parties hereto have executed this agreement
as of the day and year first above written.
MAMAKUA SUGAR COMPANY, INC.
Br
Its President a C -S-0.
WESTE H CREDIT DANK
aa*4d WvDns vrlmowoH e:Z::LI ZU'd 16-9 -03a
APPENDIX I
KUAUIHAELE LAND USE
PUBLIC BENEFITS PROPOSAL
HAK,IHUA SUGAR COMPANY, INC.
P. O. Boz 250
Paauilo, Hawaii 96776
October 1991
RURUIHAELE LAND USE
PUBLIC BENEFITS PROPOSAL
Hamakua Sugar Company, Inc. ("HSC") cultivates
approximately 35,000 acres of sugar lands on the Island of
Hawaii. The plantation itself is only 3-1/2' miles wide, but
extends for almost 34 miles along the rugged Hamakua coast.
It is the State's second largest producer of sugar,
and based on gross receipts, is the 81st largest farming
concern in America. Since 1984, the company has diversified
its business interests and modernized operations. In 1986
Hamakua started an integrated beef operation, Big Island Meat,
which raises both pasture and grain fed cattle in the Big
Island's only feedlot before processing them through its
slaughterhouse and fabrication plant.
In addition to Big Island Meat, HSC operates a small
manufacturing and marketing business for a line of cane syrup
products. HSC is also a member and part owner of California
and Hawaii Sugar Company (C&H), the world renowned refining and
marketing cooperative.
Hamakua also generates approximately 11.81 of the
island's electrical needs through the burning of bagasse, a
sugar crop by-product.
The company generates gross sales of over $60 million
annually, which computes to over $180 million in economic
activity to the state per year.
Hamakua Sugar Company took out loans in excess of $65
million when the plantation was purchased from Theo. H. Davies
in 1984. As of October 1, 1991, the principal and interest on
these loans had reached about $95 million, and combined with
other creditors, and capital gains taxes, the overall
obligation totals over $130 million.
If the company was forced to liquidate its remaining
properties, the plantation would ultimately be terminated. The
probable impacts of such an action would includer
+ Loss of approximately 750 plantation employee jobs;
+ A loss of approximately 1,700 indirectly related jobs
throughout the community and the State;
+ Loss of approximately 450 plantation supported
housing units;
* Loss of yearly plantation revenue to the County of
approximately $60 million;
* Potential cost to the State of as much as $9.9
million in unemployment benefits;
+ A major loss of energy produced through bagasse, a
renewable resource;
+ Loss of Hamakua's export earnings which helps to
diversify and stimulate Hawaii's economy; and
+ The release of vast areas of former sugar lands
without benefit of a long range regional land use
plan that is consistent with the best interests of
the Hamakua community, the County of Hawaii, and the
State.
2
In June, 1990, Governor John Waihee convened a
Hamakua Steering Committee comprised of representatives from
the County of Hawaii, the State Administration, Hamakua Sugar
Company and its major creditors, and the International
Longshoreman Workers Union (ILWU). The purpose of this
steering committee was to provide a long-range planning guide
for the partial sale of Hamakua Sugar Company lands by the
creditors imposed deadline of December, 1991. The Hamakua
Steering Committee's primary objectives were to:
1. Build consensus among the various governmental,
creditor, labor union, and community interests
regarding the planned use of lands to be sold.
2. Maintain the viability of the Hamakua Sugar Company
by helping to retain approximately 25,000 acres of
core plantation lands in the Honokaa area.
3. Retain as much Hamakua Sugar Company lands as
possible in the Agriculture and/or Conservation
District.
4. Retain as much Hamakua Sugar Company lands as
possible in the lower density classification of the
Hawaii County Zoning Code.
For planning purposes, three planning zones were
identified in the regional plans Zone 1 (Laupahoehoe-Ookala);
Zone 2 (Paauilo-Honokaa), and Zone 3 (Kukuihaele-Waipio). In
general, the regional plan calls for the expansion of
diversified agriculture in Zone 1, the retention of about
3
25,000 acres of core plantation lands in Zone 2, and a new
master planned community development in Zone 3.
When the Hamakua Regional Plan was completed in
November, 1990, several specific exactions were contained
therein:
Prior to or in conjunction with any sale, assignment,
or title transfer of property identified by Tax Map
Keys 4-8-03:06 and 4-8-04:41, a perpetual
preservation buffer shall be created. The buffer
will include a minimum area of 300 acres along the
rim of the Waipio Valley beginning from the public
lookout to the mauka edge of the subject property and
shall be conveyed to the State in fee and/or by
conservation easement meeting with the approvSl of
the Department of Land and Natural Resources (DLNR).
Use within this area shall be consistent with DLNR
rules and regulations for Conservation designated
lands. No dwellings may be constructed within this
preservation buffer.
+ Hamakua Sugar Company or its assignees agrees to
contribute a pro -rate share of the land owned by it
and required for a new road connecting Highway 19
with Highway 240. The road will be constructed to
County standards based on a pro rata share by Hamakua
or its assignees. Neither the State nor the County
will be asked to expend any funds for the
construction of the road.
• Neither the State nor the County will be asked to
expend any funds for infrastructure for land covered
by the regional plan, and all infrastructure will be
4
paid for by HSC or purchasers of the land covered by
the regional plan. The State and County will agree
to maintain the present infrastructure requirements
for all lands covered by the regional plan in
accordance with existing laws, regulations, standards
or requirements.
• All Hamakua lands directly related to plantation
operations and/or activities presently zoned Ag -40,
will be rezoned (i.e., Ag -20,000a) so that the
overall density will remain unchanged throughout the
regional plan area.
Hamakua Sugar Company and the Western Farm Credit
Bank has developed an overall concept plan for the
approximately 3,827 acres of former sugar cane land in Zone 3.
The Rukuihaele Land Use Plan is consistent with the development
parameters outlined in the Hamakua Regional Plan for this are.
These development guideline are:
Hamakua Makai Lands
• Master planned mixed use development.
• Residential, including visitor accommodations,
village commercial and related uses.
• Golf course and related facilities.
• 500 total units allowable.
5
Hamakua Mauka Lands
• Master planned agricultural/residential use.
• 1,100 total units allowable.
• Retreat resort: 100 total units allowable.
• Golf course(s) and related facilities.
• Mud Lane Connector Road
Waipio Preservation Buffer
• Approximately 300 acres with a 300 -foot setback.
• Dedicated in fee and/or conservation easement to
State government.
* Preserve scenic and cultural integrity of Waipio
Valley.
• Passive public use.
• New Hiilawe lookout.
Kukuihaele Village
• Special treatment area.
• Preserve existing rural and design character.
• Possible Waipio Interpretative Center.
N
The range of community impact/benefit will extend
through the State, the County, the Hamakua region, and
Rukuihaele town itself.
First and foremost, government approval of the
xukuihaele Land Use Plan would permit the sale of the Zone 3
HSC lands to close and significantly reduce the plantation's
debt to it's major creditor. The Lone 3 lands represent
approximately 2/3 or 661 of the total HSC sales program, and
thus dramatically increase HSC's chances for economic survival.
Central elements of the "with -project" future are:
* Retention of approximately 750 plantation employee
jobs;
• Retention of approximately 450 plantation supported
housing units;
• Continuation of approximately 1,700 indirectly
related jobs throughout the community and the State;
• Diversification of the region's economic base;
* Continued energy production;
+ Continuation of Hamakua's export earnings which helps
to diversify and stimulate Hawaii's economy; and
* Assurances that the remaining "core" plantation lands
would be committee to large-scale agricultural
production for the foreseeable future.
7
At both the State and County levels, the project is expected to
generate revenues substantially greater than potential public
costs. Furtehr, witht he continuation of HSC operations, the
statewide sugar industry multiplier applied to HSC's average
annual earnings of approximately $60+ million projects this
component of community economic benefit at approximately $187
million to the Hawaiian economy.
The major source of revenue to the County would be property
taxes on the development site. The net balance of revenues
over costs for the County, for cash flows over the initial 20
years of operations, is estimated to exceed $175 million.
Revenues for the State would primarily come from construction
and visitor spending. A cumulative positive balance of State
revenues over costs after 20 years of operation is estimated at
$85 million to $125 million.
Regional impact mitigation improvements can be quantified in
terms of anticipated exactions directly related to public
service/infrastructure demands as follows:
1. State of Hawaii, Department of Education
New elementary or intermediate school site in Honokaa
12 to 18 acres at $18,000/acre
$2.16 - $3.21 million
2. County of Hawaii, Protective Services Facility
Fire/Police Station in Honokaa
2 to 6 acres at $20,000/acre
$36 to $108 thousand
8
3. Construction of connector roadway between
State Highway at Kukuihaele to Belt Highway at Waimea
Approximate distance: 7 miles
Right of Way width: 120 feet
$12 - $15 million
4. Affordable/Resort
Employee Housing (Honokaa)
Estimate unitss 200+
70 acres at $20,000
$1.4 million
5. Construction of On-Site/Off-Site Project
Infrastructure Construction of all interior project
roadways; intersection improvements as required;
development of a domestic water system including
source development, transmission and storage
facilities; two (2) wastewater treatment facilities;
stormwater collection systems; electrical and
telephone switching and substations with transmission
facilities (lines, poles, etc.); and possible solid
waste transfer station site.
Approximate Values $80 million
Regional public benefits directly related to recreation, open
space, agricultural and historical/cultural preservation
includes
1. Waipio Valley rim preservation buffer Conservation
easement to DLNR; Optional wilderness trail system,
rest stops, and re -forestation program
Approximate Land Areas 362 acres
Approximate Value: $24,000/acre
(land improvements) $8.7 million
2. New Waipio Valley Lookout Proposed visitors center,
access road, parking area, picnic pavilions,
restroom facilities, landscaping
Approximate Value: (improvements) $250,000
3. Public shoreline access
improvements
Approximate Distance:
Approximate Value:
parking and related
1.5 miles at 10' width (2
acres)
$48,000 (land); $200,000
(improvements)
4. Core plantation downzoning approximately 12,000 acres
of remaining core plantation land to be downzoned
into one agricultural unit (Agricultural - 20,000A)
Approximate Land Areas 12,000 acres
Approximate Values $2,000/acre
$24 million
5. Public Golf Play
Public golf rates on designated course, access to
facilities, participation in community golf related
programs
Approximate No. of Starting Times/Rounds:
30 rounds daily at $25.00/round
Approximate Value: $711,750/annually
In addition to the above stated regional public benefits
derived through the implementation of the Kukuihaele land use
plan, residents of the Kukuihaele community will be provided
with the following additional community benefits. This package
of specific benefits are intended to preserve Kukuihaele's
identity as a residential plantation community.
1. County of Hawaii, Department of Parks and Recreation
Expansion of Kukuihaele Park
Approximate Land Areas 6.1 acres
Approximate Value: $24,000/acre
$146,400
2. Kukuihaele Last Chance Store/Camp 104/105
The land underlying the existing Last Chance Store
and 11 residential occupants will be conveyed in fee
at no cost; 1 resident in Camp 104 (mauka of road)
will be conveyed a new lot makai of roadway.
Approximate Land Area: 6 acres
Approximate Values $24,000/acre
$144,000
10
3. Kukuihaele Tiger Camp/Kona Camp
37 Garden plots adjoining existing residential plots
to be conveyed in fee
Approximate Land Areas 4 acres
Approximate Values $24,000/acre
$96,000
4. Kukuihaele Cemetery expansion (Japanese/Catholic
Church/County). Set aside the existing Japanese
cemetery and access road; provide expansion for
County and Catholic Church cemeteries
Approximate Land Areas 3 acres
Approximate Values $241000/acre
$72,000
5. Separate access to makai Kukuihaele project. To
minimize potential traffic impacts and conflicts, a
new primary access intersection to the makai project
is proposed between Kona Capt and the existing access
to Kukuihaele.
Approximate Land Areas
Approximate Values $24,000/acre
(improvement/intersection) $1 million
6. Kukuihaele Real Property Tax Trust Fund.
A proposed real property tax trust fund is being
considered for Kukuihaele residents to provide
additional tax relief beyond what is available in the
existing real property tax system.
7. Interpretive/cultural center, plantation museum,
community center
Notes $24,000/acre value is the average price per acre of the
Royal Coast/Waipio sales agreement.
Significant public/community benefits will flow from the
implementation of the Kukuihaele land use plan. As itemized
above, these "with project" benefits will have County -wide,
regional, and community specific implications, and represent a
quantitative value of approximately $135 million.
11
The "without project" scenario would have significant
socioeconomic ramifications, primarily because of the certain
demise of Hamakua Sugar Company operations and the economic and
social "snowballing" effect it would generate. These revenue
lost, unemployment benefits paid, and energy production lost to
the County. The quantitative economic effect of this scenario
is conservatively estimated at almost $200 million annually.
The overall socioeconomic benefit of preserving company
operations combined with the aforementioned additional public
benefits attributable to the "with project" scenario
effectively result in a total public and community benefit
figure of at least $335 million.
12
APPENDIX 2
PROPOSED TERM SHEET
Real Property Tax Trust Fund
November 25, 1991
This agreement, entered into this day
°f , 1991, by and among Hamakua
Sugar Company, Inc. (^Hamakua"), Western Farm Credit Bank
("WFCB"), and Royal Coast Waipio Corporation (•Royal Coast")
agree to set up a Real Property Tax Trust Fund ("Fund") with
the provisions set forth belows
1. The base year for real property taxes for every
tax key covered by this Agreement and dedicated for non-
speculative residential use in accordance with Section 5 shall
be 1990-1991.
2. If the real property taxes for any tax key
covered by this Agreement for any year exceed the tax for the
base year, then the Fund will pay such excess for each tax key
which is beneficiary of the Fund. Current and accrued interest
shall be used first; thereafter principal shall be used.
3. All tax keys in the Kukuihaele Special Treatment
Area which are exclusively used or zoned for single family
residential purposes upon the effective date of Bill No. 515 or
516 will be beneficiaries of this Fund. For purposes of Fund
administration, the boundaries of the "Kukuihaele Special
Treatment Urea" shall be defined by the Hamakua Regional Plan,
Kukuihaele - Waipio Zone 3 Map (November 21, 1990) and
inclusive of all tax keys abutting the project areas between
Camp 106 (Kona Camp) to the Waipio Lookout and identified by
all tax keys listed in attached Exhibit "1".
4. The tax key will cease to be a beneficiary of
the Fund if the owners of record upon the effective date of
Bill No. 515 or 516 sell their land or if they both die.
Proposed Term Sheet
Real Property Tax Trust Fund
November 25, 1991
Page 2
Camp 106 (Kona Camp) to the Waipio Lookout and identified by
all tax keys listed in attached Exhibit "1".
4. The tax key will cease to be a beneficiary of
the Fund if the owners of record upon the effective date of
Bill No. 515 or 516 sell their land or if they both die.
However, the owners may give their land to members of their
family either by gift or by will and their family members will
continue to be beneficiaries of the Fund unless they sell their
land or die. The tax key shall also cease to be a beneficiary
of the Fund if the zoning is changed to zoning other than
agricultural or residential.
5. Each beneficiary shall file a Notice of Non -
Speculative Residential Use in accordance with Article 7,
Chapter 19, Section 19-58.1 (Certain Lands Dedicated to Non -
Speculative Residential Use) of the Hawaii County Code or
amendments thereto, and shall keep such dedication in full
force and effect. Failure to do so shall render such
beneficiary ineligible for the benefits of this Fund.
6. The Fund will be funded by allocating to the
Fund a percentage of each initial retail sale of a single
family lot or a condominium unit in the Waipio project. This
percentage shall be 0.58 of the gross sales price.
7. within thirty (30) days of closing, Royal Coast
shall provide an initial sum of $100,000 to the Fund. The
principal of the Fund will be invested and interest will be
added to the principal. The Fund principal shall be deposited
Proposed Term Sheet
Real Property Tax Trust Fund
November 25, 1991
Page 3
in an interest bearing account meeting with the approval of
Royal Coast and the County Department of Finance. The County
Department of Finance shall be authorized to draw upon this
account for the purposes of implementing Section 2 above.
IN WITNESS WHEREOF, the parties hereto have set their
hands on the day and year first above written.
HAMAKUA SUGAR COMPANY, INC.
By
Its
By
Its
WESTERN FARM CREDIT BANK
By
Its
By
Its
ROYAL COAST WAIPIO CORPORATION
By
Its
By
APPENDIX 2
EXHIBIT 1
Kukuihaele Land Owners
Tax Key
Land Owner
Acquired
4-8-01x04
HSCo. owns - leases por.
to Florencio Visaya
Box 5028 Kukuihaele
x06
U.S. Dept. of Coggerce
1944
(Lighthouse)
4-8-04:05
Chiaki Matsuo
35 Holonua St.
1990
Hilo 96720
:06
Elwyn d Rose Rice
1973,
Box 5004
Kukuihaele 96727
113
Roger Lasko
Box 5039
1985
Kukuihaele 96727
:14
George d Matilda Farm
1985
Box 1189
Honokaa 96727
Prior to purchasing, they
leased the property frog 1948
:15
Robert i Charlene Major
new/not
Box 16
Laupahoehoe 96764
listed
:16
Clayton i Susan Schultz
1990
26236 Ingleside Way
Malibu, CA 90265
:18
Kelly t Nora& Loo
1972
Box 5092
Kukuihaele 96727
119
Abraham i Poi -Eng Kanekoa
1979
1652 Hoohalia St.
Pearl City 96782
4-8-04:20
Lane@ Okayama d Ramona Wong
Box 6402
not listed
Honolulu 96818
:21
Charles i Rachel Thomas
Jolene Reucia
1972
Box 5057
Kukuihaele 96727
:23
Delbert i Torao Saito
box 1304
1980
Honokaa 96727
:24
Edwin i Jolene Reucia
Box 5057
1986
Kukuihaele 96727
:25 - :35
Chicki Matsuo
35 Holoaua St.
1990
Hilo 96720
4-8-06:11
Catholic Church
:12
Catholic Church
:15
G@orge Klika i Susan Price
10581 Cheviot Dr.
il st
listed
ed
Los Angelos, CA 90064
:16
West Hasakua Church
1954
15 Craigside P1.
Honolulu 96817
:17
Catholic Church
:18
Chiyoko i Kenneth Takaaoto
1958
Box 5084
Kukuihaele 96727
:19
Catholic Church
320
Yoshiko i Takeaori Ishiki
1956
Box 5038
Kukuihaele 96727
4-8-06:21
Alan d Maria Cater
Bow 5090
new/not
Honokaa 96727
not listed
122
Russell d Charlene Rodriquez
not listed
Box 985
Honokaa 96727
• Looks like they bought or
inherited fro• a relative.
323
Juan/Elizabeth/Presley Millar@
1963
Box 5009
Kukuihaele 96727
:24
Albert/Ernest/Fredrick Tanaka
1986
Box 5028
Kukuihaele 96727
• Looks like they bought or
inherited from a relative
=25
Roy i Yukiko Hiraoka
1956
Box 5114
Kukuihaele 96727
:26
Ernest i Charles Iwasaki
1981
Box 5008
Kukuihaele 96727
:27
John d Richard Seifert
1980
Box 2578
Kamuela 96743
128
Joseph i Harriet Batalona
1957
Box 5055
Kukuiha@le 96727
229
Phyllis Plunkett
1968
54282 Hauula Homestead Rd.
Hauula 96717
:30
Ruby Robledo
1956
Box 5021
Kukuihaele 96727
4-8-06331
Noriyasu Matsummura
Box 1577
1963
Honokaa 96727
332
Herbert Kadooka K. Trustee
2374 Ahakapu St.
1980
Pearl City 96782
:33
Donato i Dorotta Andres
Box 5119
1961
Kukuihaele 96727
:34
Juan i Sophie Revilla
Box 5068
1957
Kukuihaele 96727
:35
Toledo Family Trust
Mary Jane Kamakawiwoole
1959
Fredrick Toledo
Box 5096
Kukuihaele 96727
:36
Michie t Gary Takamoto
Box 5106
1958
Kukuihatle 96727
:38
Florencio i Mikiyo Algre
Box 5103
1958
Kukuihaele 96727
:41
Catholic Church
:42
Paul i Eleanor Christensen
Box 5100
1969
Kukuihaele 96727
:46
Stanley L Elaine Yamamoto
Box 974
1978
Honokaa 96727
:47
Myron i Julie Kidani
Box 5031
1978
Kukuihaele 96727
:48
Milton 6 Jo Ann Lau Kong
Box 655
1978
Honokaa 96727
4-8-06:49
Ainslie d Anita Loo
Box 754
1978
Honokaa 96727
:50
Ronald L Cynthia Kanekoa
Box 5122
1978
Kukuihaele 96727
4-8-07:01
Antone Gabriel Estate
Emma Hitchcock
1970
528 Kaulani Way
Kailua 96734
:02
Thomas Lalakea
247 Dowsett Ave.
1963
Honolulu 96817
:04
Paahao Ako d Verna Mae Branco
1971
1650 Ainaola Dr.
Hilo 96720
:05
Anton# Gabriel Estate
William Mills
1970
183-B Paddon Pl.
Marina CA 93933
=06
Sam, Ida i Annie Kane
1950
Lillian Kai
Box 5056
Kukuthaele 96727
:07
Seiko Kaneshiro
Box 5110
1975
Kukuthaele 96727
:08
Mae Gabriel, William Mills
1970
Emma Hitchcock
89-435 Pohakunui Ave.
Waianae 96792
:09
Roy i Gladys Toko
Box 5126
1957
Kukuihaele 96727
4-8-07:10
Thomas Lalakea
247 Dowsett Ave.
1963
Honolullu 96817
Mae Gabriel, William Mills
1970
Emma Hitchcock
89-435 Pohakunui Ave.
Waianae 96792
:31
Dale 9 Christine Streisand
1961 ?
Box 639
Honokaa 96727
s12
Sarah Petersen
Box 5023
1985
Kukuihaele 96727
:13
Michael McLean i
Norma Dimeo-McLean
new/not
13001 Glenwood St.
listed
Studio City, CA 91604
:14
William Rogers 9 Diane Foley
new/not
677 Portofino Lane
listed
Foster City, CA 94404
t16
James 9 Kristan Hunt
1980
Box 5104
Kukuihaele 96727
:17
Mae Gabriel, William Mae
1970
Emma Hitchcock
89-435 Pohakunui Ave.
Waianae 96792
tl8
Sam, Ida, Annie Kane
1945
Lillian Kai, HSCo.
Box 5056
Kukuthaele 96727
821
Sam, Ida, Annie Kane
1950
Lillian Kai, HSCo.
Box 5056
Kukuihaele 96727
4-8-07:22 Sas, Ida, Annie Kane 1945
Lillian Kai, HSCo.
Box 5056
Kukuihaele 96727
:23 Alan Kaaua, HSCo. 1944
Corrine Rabinsteiner
Genevieve Bruss
Box 371
Pahala 96777
:24
Sas, Ida, Annie Kane
1945
Lillian Kai, HSCo.
Box 5056
Kukuihaele 96727
:25
Mae Gabriel, William Mills
1970
Emma Hitchcock
89-435 Pohakunui Ave.
Waianae 96792
126
Alan Kaaua
1977
Box 371
Pahala 96777
:28
Mae Gabriel, Willia■ Mills
1970
Emma Hitchcock
89-435 Pohakunui Ave.
Waianae 96792
:29
Naasan Toko
1986
Box 5064
Kukuihaele 96727
:31
Richard i Elise Mastronardo
1986
Box 2784 Kasuela 96743
Alan Shattuck
Box 1635
Kasuela 96743
4-8-08x05
Thomas i Carolyn Lalakea
1974
247 Dowsett Ave.
Honolulu 96817
:06
Alston i Shirley Toko
new/not
Box 5069
listed
Kukuihaele 96727
4-8-08:07
Jeffrey Hoff
73 4226 Loloa Way
new/not
Kailua-Kona 96740
listed
:08
Thomas i Carolyn Lalakea
1974
247 Dowsett Ave.
Honolulu 96817
:09
Mae Gabriel
1970
89-435 Pohakunui Ave.
Waianae 96792
:10
Samuel i Hazel Mock Chew
1969
Box 5129
Kukuihaele 96727
:12
Sam, Ida, Annie Kane
1950
Lillian Kai
Box 5056
Kukuihaele 96727
:14
William Kaneko&
1962
Box 5089
Kukuihaele 96727
:15
Benjamin L Dorothy Badua
1974
Box 5109
Kukuihaele 96727
:16
Wahinemaikai Kane
1945
Robert Toko
C/O Pamela Mathieu
Box 1216
Honokaa 96727
:17
E&ma Hitchcock
1970
528 Kaulani Way
Kailua 96734
:18
Kenso Takamoto
1952
Box 5123
Kukuihaele 96727
:20
Rudolph i Brenda Angelo
1984
Box 679
Honokaa 96727
4-8-08:21
Thomas 6 Carolyn Lalakea
1974
247 Dowsett Ave.
Honolulu 96817
:22
Benjamin d Dorothy Badua
1974
Box 5109
Kukuihaele 96727
:24
Theodore d Nellie Angelo
1963
Box 5005
Kukuihaele 96727
:25
William Kanekoa
1962
Box 5089
Kukuihaele 96727
:27
Delbert i Tarao Saito
1984
Box 1304
Honokaa 96727
:28
Rudolph d Brenda Angelo
1984
Box 679
Honokaa 96727
:30
Sam, Ida, Annie Kane
1982
Lillian Kai
Box 5056
Kukuihaele 96727
:31
Augusto i Cecilia Gancinia
1986
Box 1007
Honokaa 96727
:32
Dannie i Delores Coates
1985
Box 5099
Honokaa 96727
4-8-09:01
Eeilo i Bebe Ponce
1986
Box 425
Honokaa 96727
302
Bonifacio i Eufemia Collado
1975
Box 5047
Honokaa 96727
4-8-9:03
Anacleto, Shirlanng Peterson i
Bernadine Nuniez
1982
Box 1303
Honokaa 96727
:04
Peter Sau i Beverly Youn !ag Sr.
1973
Box 755
Honokaa 96727
:05
Rumualdo d Fannie Duldulao
1960
Box 348
Honokaa 96727
:06
Kenneth i Dawn Rillanos
1987
Box 548
Honokaa 96727
:07
Hidemi 3 Doris Miyasaki
Box 5037
new/not
Honokaa 96727 (pensioner)
listed
:08
Clito d Nena Guzman
Box 5121
1977
Kukuihaele 96727
709
Dennis d Darlene Ganiyan
1973
Box 5132
Kukuihaele 96727
:10
Toshiko Sasaki
Box 5112
1963
Kukuihaele 96727
:11
Clarence d Joanne Nakamura
1980
Box 5079
Kukuihaele 96727
:12
Moses i Mary Kunishipe
1985
Box 780
Honokaa 96727
4-8-09:13
Noriyasu Matsumura Trust
1982
Box 1577
Honokaa 96727
:14
Lawrence d Katerine Fujioka
1960
Box 5107
Kukuihaele 96727
:15
Yuban i Mo@oyo Maehira
1960
Box 5074
Kukuihaele 96727
:16
Benjamin 6 Esther Visaya
1960
85-175 Farrington Hwy A-218
Waianae 96792
:17
Paulino 6 Ida Malacas
1960
Box 5051
Kukuihaele 96727
:18
Estanislao d Mamerta Tejero
1971
Box 5075
Kukuihaele 96727
:19
Pelajio d Belaine Cadiz
1962
Box 5006
Kukuihaele 96727
:20
Alfredo d Alice Millare
1960
Box 5072
Kukuihaele 96727
:21
Herbert i Mao@ Fujii
1960
Box 5059
Kukuihaele 96727
:22
Morio i Hideko Takao
1984
Box 5087
Kukuihaele 96727
' 4 RECE. VE0 J � i f 5 ISS,
APPENDIX 3
Hamakua Sugar Company, Inc. ;;0 �a;;�;,;;w•1196::•
r.i iu: coon M12M
October 14, 1991
Mr. Russell S. Kokubun, Councilman
Mr. Takashi Domingo, Councilman
County of Hawaii
Hawaii County Building
25 Aupuni Street
Hilo, Hawaii 96720
Gentlemen:
Thank you for your letter dated August 27, 1991 concerning
our mutual efforts to finalize various understandings which will
facilitate expeditious approval of our requested land use changes.
These approvals are essential to the successful consummation of
our land sales program, which in turn, are essential to our effort
to eliminate our debt to the Western Farm Credit Bank (WFCB), thereby
securing the long term future of our sugar operation.
We note that you acknowledge the three numbered assurances that
appear on page 1 and the top of page 2 of your letter. We confirm
that the first two of these assurances are included in the most
recent Forebearance Agreement between Hamakua Sugar Company, Inc.
(HSC) and its lenders and that the WFCB has committed to the third
assurance in letters to HCS. We have accepted and acknowledged
these conditions and will implement the actions which are required.
In addition to the above, your letter requested certain
additional assurances to address the following needs: (1) to protect
the entire spectrum of employee housing needs if HSC closes down,
goes.into bankruptcy, or is foreclosed upon; (2) to expand employee
housing opportunities; and (3) to relieve the potential increase of
real property tax for the long-time residents of Kukuihaele. These
additional assurances have been reviewed and discussed with WFCB and
we have now received a letter from them setting forth the extent they
are willing to go in providing for them. We quote from the WFCB
letter as follows:
"1. If HSC closes down operation, or goes into bankruptcy,
WFCB will agree to assist in providing supervisory employees
of HSC with a right of first refusal to purchase their
plantation residences at the then fair market value, provided
they are residing in their residence at that time. In the
unlikely event HSC is foreclosed upon, WFCB will offer the
supervisory employees of HSC the same right of refusal.
2. WFCB and HSC are currently in negotiations with various
parties to assure that affordable housing is available to
such employees. In fact, the proposed sales contract for
the sale of the Paauilo Subdivision requires the buyer to
set aside 100 lots of subsidized prices. In addition, WFCB
and HSC are currently exploring the possibility of providing
Russell S. Kokubun, Councilman
Takashi Domingo, Councilman
October 14, 1991
Page 2
additional lots at Honokaa at affordable prices.
If WFCB and HSC can agree upon the best means to satisfy
employee housing needs, WFCB will agree to execute and
l
agreedlace iupon nto ehousing sites. The rescroweinstructionstwould
generally provide that, upon receipt of final subdivision
approval for such sites, the deeds and partial releases
would be delivered to either a nonprofit corporation, in the
event Hamakua closes down operations, goes into bankruptcy,
or is foreclosed upon, or to HSC if all the debt owing to WFCB
was paid off. This is similar to assurances previously given
regarding plantation employee and pensioner housing sites.
11
3. As you are aware, WFCB and HSC have developed a plan to
ensure that long-time residents and HSC pensioners of
Kukuihaele will be protected against speculative real
property tax increases for a reasonable period of time.
WFCB will a&ree to assist HSC in implementing this plan
when it is finalized."
NSC is in full agreement with item 1 above and will cooperate
with WFCB to implement this commitment in the event that it closes
down operations or becomes bankrupt.
With regard to the second paragraph of item 2, we support the
underlying objective of providing an opportunity for any of these
employees, who are laid off because HSC closes its operations to
purchase a house lot, either directly or through a non-profit
corporation, at affordable prices provided they demonstrate their
intention to build a home on the lot and use it as their primary
residence. We are prepared to work out a procedure to accomplish
this purpose which will be fair and reasonable to all concerned.
With regard to the third paragraph, we are supportive of this
effort and will cooperate with WFCB and the purchaser of the
property provided that it does not result in financial or economic
contributions by HSC in addition to those already committed to.
We are mof your oour
stent to
has
been extremely helpful in accomplishing the significant progress
that has been made to date. In return the owners and management of
HSC are committed to the continuation of the Company's sugar operation
for the long term in order to preserve the jobs, lifestyle and
economic base for its employees and the entire Hamakua area. We are
convinced that, with the total retirement of the Company's debt to
Russell S. Kokubun, Councilman
Takashi Domingo, Councilman
October 14, 1991
Page 3
WFCB and the resulting elimination of the related interest payments,
and with a six week offseason for factory repair, which is presently
scheduled for next March and the first half of April, the sugar
operation can sustain itself.
worn ousincludes
annual
tandobsoleteequipmeaital e
ntofabouti$4r000 OOOtues for ewhich willlacement becovered byp depreciation plus future off seasons regqwiring appproximately
business0andnarelforecastedntogberofits adequateltobe refinanceetwodn the
projects
both of which will provide exceptional returns on investment and will
increase profits significantly.
The first of these is expected to be implemented as soon as
our debt to the WFCB is paid oif and involves the installation of
two types of equipment in the boiling house of our factory to
increase the recovery of sugar from molasses. This project was
originally a part of our factory expansion plan when we consolidated
the Haina and Ookala factories, but it was delayed due to the shortage
of funds.
The second project has two phases, the first of which will
probably start being implemented in 1993. The result of these
projects will be to significantly improve the efficiency of our
power generating facilities which will enable a substantial increase
in the exportable amount of electric power for sale to the Hawaii
Electric Light Company (HELCO) grid by capturing more of the btu value
of the bagasse fuel which is presently available. This project is
readipowerlsalesancible agreementtwithlHELCOuire an and possiblysion someof our amendmentsttocit.
For the longer term future, but within the next three to five
years, there is a very high probability that new technologies which
are now being finalized and refined will make it possible to produce
high value products from our present low value by-products of bagasse
and molasses. This has the potential to diversify and broaden our
income base to be less dependent on the sales of sugar for human
consumption as a sweetener.
Indications are that the value of these new products could
equal or exceed that of sugar while the incremental cost of producing
them would be minimal since the cost of growing, harvesting,
transporting and initial processing of cane is already covered.
These developments could revolutionize the sugar industry and make
it a very profitable activity. HSC is fully commited to maintaining
itself during this difficult period so that it, its employees and
Russell S. Kokubun, Councilman
Takashi Doming, Councilman
October 14, 1991
Page 4
the population of the surrounding community can reap the benefits
that the future holds while maintaining the agricultural land
use and lifestyle for the vast majority of this area.
We deeply appreciate your past support and look forward to
continuing mutual cooperation for the successful conclusion of this
effort which will solidify the long term future for this area in
a manner which coincides with the desires of the vast majority of
its population.
Sincerely,
HAMAKUA SUGAR COMPANY, INC.
0/'�;�.�YLz1J lit
Francis S. Morgan, Pr€silent
and Chief Executive Officer
FSM: ffh
CC: Tim Hay
Olen Zirkle
James Case
David Morgan
Duane Kanuha
ir
Hamakua Sugar Company Inc 770
/ Pseudo, Hewed 96776
f.anti, S. Mogen Teleohoew: 18081 776.1511
►rte.Een1 Chef Executive officer Few! 18061 776 1250
July 17, 1991
The Honorable Lorraine R. Inouye
Mayor, County of Hawaii
25 Aupuni St.= Room 3213
Hilo, Hawaii 96720
Dear Mayor Inouye:
Enclosed, herewith, is a copy of a letter dated
July 17, 1991, addressed to me from Western Farm Credit
Bank. It is my understanding that this letter together
with the letter addressed to you from Western Farm
Credit Bank dated July 17, 1991, (copy of which is attached
for your information) conform with the understanding of all
parties. I have, therefore, signed the letter to me,
accepting it on behalf of Hamakua Sugar Company, Inc.
We trust that both letters from Western Farm Credit
Bank satisfy the requirements of the County Administration
and that you will now undertake to implement the conditions
stated in paragraphs "A, B and C" on page two of the letter
addressed to me.
We would appreciate your acknowledging receipt of this
letter and also advising us that the above meets your
satisfaction.
Very truly yours,
HAMAKUA SUGAR COMPANY, INC.
%��Francis S. Morgan, P sident
and Chief Executive Officer
FSM: ffh
encls.
CC: B.T.Mizuno
J.H.Case
T.B.Hay
R.Kokuyon
T.Domingo
D.Takamine
Western Farm Credit Bank
July 17, 1991
Francis S. Morgan
President & Cblef &ecutive Officer
Hamakua Sugar Co., Inc.
P.O. Box 250
Paaullo. Hawaii 96766
Re: General Plan Amendments
Dear Mr. Morgan:
We are In recdpt of a copy of Mayor Lorrnlne R Ino
letter addressed toyou and have discussed its con
m
Jaes H. Case and our Board of Directors.
The Mayor's letter requested that WFCB provide cez
has responded opthose th bregGuests as disclosed in the
discussed In to attached letter. WFCB gives the fol
1 dOBf t�h fa atroance extend to existing Dece
open escrows to clone. FV'rther Vt FCB unea
additional forbearance beyond June 30, 199
lands to be sold If the present buybeere fail to
consideration
ddle oeo`naaltl»eomust be subrnitted on o forbearance.
i
2. WFCB will agree to imm
deed and partial release
ka..atnd aft" e.sd tl&o w
homes). The escrow Insi
of Mal subdivision appr
and partial release woul!
!ss Aror,r AA.0
P.O. Im 131J1
lw InVIC. COOMW
i1146M
July 1. 1991
with you and
isurances In
ith. WFCB
ed letter. As
assurances:
ler 31, 1991, due
1992, to perrWt
!e to consider
!o permit subject
._
request for
April 30. 1992.
execute and lace Into escrow !&
tntation em p yee and pensione
lu++d (cAJUFV ve of vupennunpe
would prowl a that upon rec�lp
be County to these sites the de
or Comparable entll�yy in the event Hamakuti S "64 Ca"("Flamal*ua"
ar
cloaca down operatfone, went into bankrupt . or was orecloe d
upon; or, (2) to Hamakua if all debt owing to a was paid off.
In essence, we are not op osed to your prof o al having to do th
employea and pensioner 1%using. Obvtously, stage reg in
speciSc sites and the underlylnj an H W ed to be work out
and agreed upon between WWlF''CC pprior to the
application& for the subdivisions. We would the unreasonable
In this regard.
nr %" a«+ SM&N
Granas s. Morgan
July 17, 1991
Page 2
9. In the event the revenue horn the sale of the ccse land fella short
of retiring the loans to the Farm Credit Syste ,the core plantation
lands would not be liquidated indiscrtminat
These assurances are given with the followln Conditions:
A. The County Administration will work d genu and use Its
best efforts to provide the entitlements sted � the
Harnakua Rnal Plan.
B. The County Administration will Immed tely initiate an
action to amend the General Plan to co orm to the
Hamakua Regional Plan.
C. 7be County staff will work diligently to eet the deadlines
LImposed bk all the e�dsting sales contr is for the for Sale
We trust the foregoing is saUsfactory to Hamakua d the Mayor, and we
look forward to moving quickly on this matter. It is our underetanding
that the Mayors 011lce is agreeable to the foregoing d will be issuing a
letter conArming their position once Hamakua afire s to the contents of
this letter.
If Hamakua is agreeable to the plan aeUons and as antes set forth in
this letter, please execute and date the attached co of this Ietter, and
return It to me as soon as Doamble_
Sincerely,
Vice Presid ed /
TMB:pkh
I
On behalf of Hamakua Sugar Company and in my dividual cappael J
hereby agree to the actions to be taken by the Coun and WFCB as et
forth above, to the assurances set forth above, and and
the
requirements of same.
July 17, 1991 rr
Date
Francis S.or an
President & C of uttve Oiil er
Hamakua Sug Co.. Inc.
July 17, 16 91
Page 9
cc: Honorable Lorraine R Inouye, Mayor
Barry T. Mizuno, Managing Director
James H. Case, Esq
Councilman Russell Kokubun
Councilman Tadashi Domingo
Representative D�ht Takamine
Harold
Yukio Kltlgawa-Do, b tor. D of PI
pertma ent g
of
Members oof Crediton Committee
Gilbert D. Butson, Esq,
illi*ereu Tii,t• Dr,w tie61
Western Farm Credit Bank L:n 1t• '
�Vo.:8Han 35BLKt15
1:61 6X0
July 17, 1991
The Honorable Lorraine R. Inouye
Mayor, County of Hawaii
25 Aupuni Street, Room 3213
Hilo, Hawaii 96720
Re: Hamakua Sugar Company, Inc,
Dear Mayor Inouye:
We are In receipt of a copy of your July 1. 1991 letter addres ed to
ournBo door Directors. This l tier discussedIts
supersedes ur letter of
gan and
July 3. 1991 and July 15, 1991.
Inyour letter you have requested t1lat WFCB provide certain
so thatyou may proceed with the General plan Amendment,
With this 1s mind, WFCB gives the following assurances:
1. WFCB will agree to extend the existing December 31, 1
date of the forbearance agreements to June 30, 1992, 1
open escrows to close. Further, IVFCB will agree to coy
additional forbearance beyond June 30, 1992, to perml
lands to be sold if the present buyers fall to perform. I�
consideration bele bmitted n or before Ami- l 3
2. WFCB will agree to imme
deed and Dartlal release
housing sites and the un
of Anal subdivision apprc
and or compparrab a entittyreleasewyln t1
closed down operations.
I
upon, or, (2) to Hamakua
In essence. we are not opJ
empl0 ee and pensioner 1'
spec c sites on
the and
and pplications for the between
in this regard,
ately execute and place Into
all Plantation employee and
•l g land (exclusive of sup
I by the would provide
or these of
delivered to (1) a nonprofl
event Hamakua Sugar Co,
it Into bankzvptcy. or was
all debt owing to WFCB as
ted to your proposal havin
)pp1, due
[Ger
Subject
Pr
1992.
crow a
nsl0ner
ntendent
i receipt
the deed
rporatior
unakual
closed
Lid off.
do with
ina would need to be rkea out
•nd Hamakua prior t e
we would not be unreasonablo
3. In the event the revenue from the sale of the excess
of retiring the loans to the Farm Credit System, the
lands would not be liquidated indiscriminately.
TM lam G644 Sgtrm
falls short
plantation
Inc honorable Lorraine R. Inouye
July 17, 1991
Page 2
These assurances are given with the following undere ding:
A. The County Administradon. will work diligentl d use fie
best efforts to provide the entitlements lleted >Yn e
Hamakua Regfonal Plan.
B. The County Administration will Immediately inf Le an
action to amend the General Plan to conform to e
liamakua Regional Plan.
i
C. The County staff will work diligently to meet the eadltr
Imposed by all the Wsting sales contracts for th ' "For
Unfortunately, our Board of Directors Js not in a position to I gree to any
release of collateral unless the fair market value of the pprole do 1s
applied to the existing loans. Further, our regulator, Tfte F Credit
Administration, would view your proposal, to release collater as
entitlements are received, as an unsaed on fe and unsound lendte racttcpe
that the which assurances it h s given meet your rrequiirements fn t of the
1s hopeful
following;
First, the "For Sale Lands" would be liquidated before any de aeon will be
made on the core plantation and if the sae of excess lands f s to repay
another lender, to sell all we n equity encourage
the plantatito on o to with
*sell the
plantation as an operating unit.
Second, the forbearance agreements provide for the release o our claim
on the remaining plantation assets after all debt has been re aid.
Further, it provides for orderly liquidation of assets, and not forced
sale.
Third, theAg g oan large 20,000 -acre Zoning (plan fraction) limits the s e of the
core ]ants on property for anything than scale a cultural
use for at least a five-year period.
Fourth, the borrower's rights provisions of the Farm Credtt A tlgJve
ippiaaanmakua Sugar Company the right of first refusal for any eo
Hamakua prrootec on of theme unity interest In the =ooh. 7hf le not
available from any other lender. equity p party
It is WFCB's opinion that the Plan offers the best means, at point, to
preserve the plantation and retire Flamakua's debts.
We trust the foregoing is satisfactory to your needs, and we to forward
f moving quickly on this matter. You may be interested to w that as
es this date, 05.4Hamn a's land sale efforts have resulted m 650 'acres in
escrow for 8105.4 million, 248 acres pending escrow for t1ti9.1 Mon.
The Honorable Lorraine R. Inouye
July 17, 1991
Page 9
and 2800 acres being neggotiated for sale In the approximate ount of
$16.0suMci �o meAccording
t the in tent f the Plan. actions taken on ur part are
Sincerely,
TMH:pkh /
CC: Barry T. Mizuno, Managing Director
Norrhan aMtaDrhoMihel J.asukwa. Planning
Counsel
Brian Francis S. Morgan. Hamakue Sugs Company
James H. Case, Esq.
Councilman Russell Kokubun
Councilman Tadashi Domingo
Representative Dwight Takamine
Harold Masumoto, Director of Planning
Yukio Kitigawa, Director, Department of Agriculture
Russell Botelho
Members of Creditors Committee
Gilbert D. Hutson, Esq.